United States v. Don H. Pace

Don Pace appeals his conviction and sentence for two counts of wire fraud, in violation of 18 U.S.C. § 1343 , and one count of subscribing a false tax return, in violation of 26 U.S.C. § 7206 (1). The main issue on appeal is whether venue existed in the District of Arizona. For the reasons that follow, we reverse Pace’s wire fraud convictions but affirm his conviction for subscribing a false tax return.

Background

For 23 years, Don Pace (“Pace”) worked as a successful trial attorney in Cleveland, Ohio. In 1986, he left his law practice and, two years later, formed Pace American Group (“PAG”), an insurance holding company. He remained president and CEO of the corporation until 1994. Pace also served as the vice president and director of American Bonding Company (“ABC”), a subsidiary of PAG providing surety bonds to construction contractors on federal, state, and local government projects. At the time of the alleged offenses, ABC was headquartered in Tucson, Arizona, and maintained a branch office in Pasadena, California.

In 1990, ABC expanded its business into Mexico and entered into a cooperative bonding agreement with Afianzadora Mex-icana (“AFIMEX”). Under the terms…